Good morning traders and welcome to the German DAX30 Analysis for today, June 8th 2020.
German DAX30 Analysis Review From Last Session
During the last session, we saw the DAX 30 get to a session high of 12867 and a session low of 12402 giving us a range of 465 points compared to the average daily range of 265. At the close of play last session, the market closed at 12777 which was 1020 points above the 200EMA and 1509 points above the 50EMA.
After the strong DAX rally of the past few days (approx 18% in 10 trading days), we start the new week with losses. In Germany, the focus is on the cars and Wirecard shares – as these are pulling the leading index down. Perhaps this is a time for some of the longer-term traders to take some profit? The V-Shaped recovery rally during the coronavirus breakout was fuelled by economic stimulus and hope of easing lockdown, but the steep trend is difficult to maintain without stabilisation and consolidation.
My German DAX 30 Trading Update
As for my index trading; during the last trading session I took a total of 7 trades, so it was an interesting session with plenty of trading opportunities (3 DAX trades and 4 FTSE trades). Breaking down my DAX trades, 2 were from the DAX trading strategy (DTI) and 1 was from the regular morning DAX signal. Breaking down my FTSE trades, 2 were from the DAX trading strategy (DTI) and 2 were from the regular morning DAX signal. Overall, I had a total of 1 winners, 1 break-even trade, 2 trades closed at around 8pm, which gave me a total profit of 2.8%.
To keep a track of the trading results, you can read the dax trading spreadsheet. In order to get access to the signals and to the strategy, you will need to be a member of the site. Find out more about membership.
German DAX 30 Analysis – Outlook
The German DAX 30 is currently Bullish.
The DAX30 index is currently showing a progressive series of higher highs and higher lows. The trend defining level is currently 12581, so the market remains bullish above that level. In order for the market to remain bullish, we need to take out 12867. I will again be looking to use the DAX trading strategy to provide some useful setups today.. It’s worth mentioning that the daily DAX RSI reading is currently 85, which is pretty overbought. Although we know that momentum is clearly bullish right now, the buying pressure now has a much higher likelihood of running out of steam. We can still get long, but perhaps we should be cautious entering longs.
German DAX30 Analysis – Economic Outlook
In terms of economic data releases, today is rather thin. The highlight is the German industrial production for April, which is likely to be dire. In general, traders will be looking for updates on the virus numbers as Southern Europe starts opening larger parts of the service sector.
Details regarding EU’s recovery fund continue to emerge from the ongoing negotiations. It seems that some people believe the allocation of funds is not proportional to how badly they were affected. The allocation will be based on, among other things, GDP (per capita) and average unemployment rates from 2015 to 2019 resulting in, for example, Belgium, having been hit rather hard by the virus, receiving one of the lowest amounts of aid from the fund, whereas Poland, whose economy is set to be the least affected, will be one of the big winners. The deal looks to be finalised by August.
German DAX 30 Analysis Key Levels
Taking a look at the key levels to watch today, watch out for the previous session Point of Control (POC) at 12804 and the previous session Volume Weighted Average Price (VWAP) at 12718. The value area high (VAH) is currently 12861 and the value area low (VAL) is currently 12668.
German DAX 30 Technical Indicators
| Indicator | Value |
|---|---|
| RSI | 85 |
| Stochastic | K: 90 and D: 92 |
| MACD OSMA | 130 |
| Point of Control (POC) | 12804 |
| Value Area High (VAH) | 12861 |
| Value Area Low (VAL) | 12668 |
| The DAX Pivot | 12682 |
| The DAX R2 | 13146 |
| The DAX S2 | 12218 |
| Daily 5 EMA | 12489 |
| Daily 8 EMA | 12281 |
| Daily 50 EMA | 11268 |
| Daily 200 EMA | 11757 |
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